PSA warns that making vehicles separately for UK and EU would impact British production

PSA builds the Astra compact car for Opel and Vauxhall in Ellesmere Port in England.

PARIS -- PSA Group's Europe boss Maxime Picat has said that if the UK's departure from the European Union disrupts trade to the extent the automaker has to make vehicles separately for the two markets, there would "necessarily be an impact" on its British production.

PSA build the compact Astra car at its Ellesmere Port plant in North West England and the Vivaro commercial van at its plant in Luton, near London, according to Automotive News Europeassembly plant map. Production of the Citroen Jumpy and Peugeot Expert vans will be added in Luton next year.

"We have been doing all we can to develop our UK business, restore Vauxhall and Opel profitability, reinvesting in Luton and improving our sites' competitiveness in order to help them face up to an uncertain future," Picat told Reuters at the Paris auto show.

"But there are limits. Those limits are customs barriers, and the loss of freedom of movement, for people and goods. If we get to that point, we will be obliged to take measures."

"If we suddenly have to start manufacturing for the UK in the UK, and for Europe in Europe, there will necessarily be an impact on UK production," Picat said in an interview.

"We are not going to be dogmatic about it, and there's no question of punishing the UK. We'd take a look at our two factories, the state of our business, and look for a solution. But I do not know where that will lead us in terms of the sustainability of our sites."